The formula for break-even in units is - FC/CM per unit. CM per unit = price - variable cost per unit CM per unit tells us how much money we make for each unit that is sold (how much each unit contributes to covering fixed costs). Price was given in the case =$7.00. This is the retail price charged to customers. The formula for breok-even in dollara can be computed 2 ways: 1. Break-even in units x price per unit 2. Total Foed Costs/ CM Ratio; the CM Ratio = CM per unit/Price per unit Review page 5 of the case book. Using the income statement information at the bottom of the page, determine the number of units for week 1 (divide Sales by $7.00; repeat for week 2 and week 3 ). Confirm this agrees with the units of output given at the beginning of the case (400,500 and 600). Explain why week 1 net income was negative given what you calculated for break-even point in units and sales dollars. The formula for break-even in units is - FC/CM per unit. CM per unit = price - variable cost per unit CM per unit tells us how much money we make for each unit that is sold (how much each unit contributes to covering fixed costs). Price was given in the case =$7.00. This is the retail price charged to customers. The formula for breok-even in dollara can be computed 2 ways: 1. Break-even in units x price per unit 2. Total Foed Costs/ CM Ratio; the CM Ratio = CM per unit/Price per unit Review page 5 of the case book. Using the income statement information at the bottom of the page, determine the number of units for week 1 (divide Sales by $7.00; repeat for week 2 and week 3 ). Confirm this agrees with the units of output given at the beginning of the case (400,500 and 600). Explain why week 1 net income was negative given what you calculated for break-even point in units and sales dollars